KATHMANDU, March 21: Nepal’s trade deficit growth reduced by a marginal percentage in the eighth month of the current fiscal year, compared to the figure of the previous seven months.
The records with the Department of Customs (DoC) show that Nepal’s trade deficit increased by 34.50 percent to Rs 1.160 trillion during mid-July 2021 and mid-March 2022. As of mid-February this fiscal year, Nepal witnessed a 42.78 percent increase in trade deficit amounting Rs 1.147 trillion.
During the review period, the import expense soared 38.64 percent to Rs 1.308 trillion. Until the previous month, the imports increased by 42.78 percent.
According to an official of the Ministry of Finance, the slow rise in imports was an outcome of the government adopting policies to restrict imports. The government has maintained the importers to maintain up to 100 percent cash margin while opening a letter of credit account on import of 47 items from abroad.
Along with the imports, the exports growth has slowed during the review period. Nepal earned Rs 147.74 billion, a 82.90 percent rise compared to 88.30 percent as of the previous month. Palm oil and soybean oil led in terms of the export earnings of the landlocked country.